According to Zoom Property Insights, the Dubai real estate market will continue to grow in 2023 as property prices and annual rent are predicted to rise further due to increased demand and interest from high-net-worth individuals (HNWIs) and overseas investors.
According to the most recent data from Zoom Property Insights, property prices in Dubai are expected to increase by an average of up to 20% in 2023, with the luxury market continuing to dominate with a growth rate of 13.5%.
The property market will maintain its upward pace due to high demand from end users as well as foreign and domestic investors, according to Ata Shobeiry, CEO of Zoom Property.
“The Dubai property market has cemented its position as a leading real estate destination, with 2022 proving to be a remarkable year (so far) for the sector. It is expected to end on a strong note, paving the way for an even stronger 2023,” he said.
“I believe popular communities, such as Palm Jumeirah, Downtown Dubai, Dubai Marina, JBR, etc., will continue attracting buyers and investors in the next year as well,” Shobeiry said.
High-end properties on the rise
In reference to a recent Knight Frank report, Zoom Property Insights predicted that high-end residences in Dubai will have another exceptional year, with prices expected to rise by 13.5% in 2019. Out of the top 25, this is the increase that has grown the most.
Los Angeles, Paris, and New York are among the well-known names on the list, while Miami comes in at number two with an anticipated 5% increase in prices.
Top areas expected to remain popular in 2023
According to data from Zoom Property Insights, the apartment market recently saw Palm Jumeirah see the biggest price increase of 5%. MBR City, Meydan City, and Living Legends came after it. The average house price increased in all of these localities by 4.7%.
Emirates Hills saw the largest rise of 4.6% in the number of villas. Other significant areas included Mudon (4.1%), Jumeriah Village Circle (3.9%), and MBR City (3.1%).
The Old Town, Dubailand Residence Complex, Green Community (DIP), and Downtown Dubai had the highest rental apartment occupancy rates at 4.9%, 4.6%, 4.5%, and 4.4%, respectively.
The Sustainable City (4.9 percent), DAMAC Hills (Akoya) (4.8 percent), The Villa (4.8 percent), and Reem (4.7 percent) remained the popular choices for renting villas.
Besides the aforementioned areas Jumeriah, JBR, Arabian Ranches, and Dubai Marina are expected to drive the property market in 2023.
“Dubai’s position as a leading tourist destination, reformed policies by the government, relaxation in visa rules, and an expat-friendly environment; it’s a combination of all these factors that have helped to make Dubai property market a roaring success. I believe they will continue to contribute to the sector’s success in 2023 as well,” Shobeiry concluded.